US President Trump’s UK state visit in September was accompanied by tech titans like Nvidia, Microsoft, Apple, and OpenAI, showcasing a royal-like entourage. The highlight was the UK US Tech Prosperity Deal announced by Trump and UK PM Starmer, aiming for deeper tech cooperation and boosting the UK’s technology sector.

The deal provides the UK tech ecosystem access to US datasets, infrastructure, and R&D opportunities on quantum, nuclear, and AI. US Big Tech also announced investments, including Microsoft’s $30bn for a supercomputer and Google’s $5bn for a data center in Hertfordshire, raising questions of data sovereignty and UK tech’s alignment with the US.

While the deal promises mutual benefits, concerns arise about the UK being exploited for cheap land and labor, akin to a developing nation. Most investments focus on data center buildouts, raising worries about energy and water supply diversion. The UK may risk becoming a satellite arm of US tech dominance rather than a sovereign power.

European Union lawmakers are distancing their business ecosystems from US Big Tech, with France and Norway developing sovereign clouds and local partnerships. The UK’s classification of data centers as critical national infrastructure highlights sovereignty concerns, especially as SMEs worry about data storage in the US due to the US Cloud Act and data transfer arrangements.

Claudio Corbetta, CEO of team.blue, emphasizes the importance of data sovereignty for SMEs, with 73% in the UK and Ireland concerned about US data storage. European SMEs also worry about US data storage, influenced by the US Cloud Act and data transfer debates. Data sovereignty impacts procurement decisions and customer trust, making European-based providers competitive in the tech market. Digital sovereignty is crucial for sustainable growth, says UK AI specialist Mahdi Yahya. UK infrastructure funding boosts the market potential for UK-owned AI infrastructure. Demand for local AI infrastructure is high due to data sovereignty concerns in Europe. Small UK industry struggles to compete with US cloud giants due to sovereignty issues.

UK AI investment focus criticized by entrepreneur Mel Morris for following trends over innovation. Morris calls for a more innovation-focused approach to AI infrastructure investment. UK urged to focus on building sovereignty and competitive technologies to avoid being a net importer of AI tech.

The UK’s AI infrastructure focus raises questions about the potential for a British Big Tech giant. Yahya highlights the importance of sovereignty and performance specialization in competing with US cloud providers. The UK must invest wisely in innovative AI technologies to avoid falling behind in the global market.

Read more at Yahoo Finance: Does the UK’s focus on AI infrastructure risk the chance of building its own British Big Tech?